No

نے

CONFIDENTIAL.

Copy to:-

Peking No. 37.

born

6.

92702/32

दिनी

"

"

谿

Sir,

2448

135

213

GOVERNMENT HOUSE,

HONG KONG,

23rd December, 1932.

I have the honour to acknowledge the receipt

of your despatch No. 383 of the 24th October, 1932,

transmitting a copy of a letter from Messrs. John

Swire and Sons on the subject of smuggling from Hong

Kong to Chinese territory.

2.

The problem is of course one with which the

Colony has been faced from the beginning of its

history and which has on more than one occasion proved

a source of friction between the Colonial Government

and the Chinese Authorities.

It is perhaps

inevitable that the existence of a free port and

emporium within a short distance of the coast of China

should afford an opportunity to smugglers of which

advantage would be taken in proportion to the height

of the prevailing tariffs and the weakness of the

controlling authority. The first condition has been

provided by the recent relatively large increase of Chinese import duties, and the second by the comparative

apathy of local and provincial authorities throughout

the greater part of China.

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.,

&c.,

&c.,

&c.

3.

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